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on Efficiency and Productivity |
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Issue of 2021‒08‒23
fifteen papers chosen by |
| By: | Ault, Toby; Carrillo, Carlos; Chambers, Robert G.; He, Yurou; Ortiz-Bobea, Ariel; Sheng, Yu |
| Keywords: | Environmental Economics and Policy, Productivity Analysis, Agricultural and Food Policy |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312864&r= |
| By: | Erick Rangel González; Luis Fernando López Ornelas |
| Abstract: | Foreign Direct Investment (FDI) is often identified as a driver of economic growth, although there is no consensus on this topic in the international empirical evidence regarding its effect on labor productivity. This document analyzes the effects of Foreign Direct Investment on labor productivity in the manufacturing sector in Mexico during the 2007-2015 period by using panel data and federative entities as unit of analysis. The estimates are calculated by the generalized method of moments, which allows to consider for possible endogeneity problems. The results indicate a positive and statistically significant effect of FDI as a proportion of manufacturing GDP on the growth rate of labor productivity when the latter is estimated with the Manufacturing Labor Productivity Index published by INEGI. Similar results are found if growth in labor productivity is estimated by using manufacturing GDP per worker, although the latter have less statistical power in some specifications. |
| JEL: | J01 J24 Q29 R11 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:bdm:wpaper:2021-12&r= |
| By: | Benito, Andrew (University of Warwick); Young, Garry (National Institute of Economic and Social Research (NIESR)) |
| Abstract: | Labour productivity stagnated in the UK in the years between the financial crisis and the emergence of Covid-19. At the same time labour supply and employment grew strongly, driven primarily by net inward migration. While labour productivity should be independent of labour supplied in the long run, this need not be the case in the medium-run. Our evidence suggests that around one-fifth, or 4pp, of the 25 log point fall in productivity from its previous trend can be explained by increased labour supply, with idiosyncratic factors and a slowdown in TFP growth accounting for most of the shortfall. |
| Keywords: | productivity, labour supply, capital deepening |
| JEL: | J11 J21 D24 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14620&r= |
| By: | Bart van Ark (Alliance Manchester Business School, The University of Manchester); Klaas de Vries (The Conference Board); Abdul Erumban (University of Groningen) |
| Keywords: | productivity, pandemic, labour reallocation, digital transformation, work-from-home |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:anj:wpaper:007&r= |
| By: | Alexander S. Kritikos; Alexander Schiersch; Caroline Stiel |
| Abstract: | In Germany, the productivity of professional services, a sector dominated by micro and small firms, declined by 40 percent between 1995 and 2014. This productivity decline also holds true for professional services in other European countries. Using a German firm-level dataset of 700,000 observations between 2003 and 2017, we analyze this largely uncovered phenomenon among professional services, the 4th largest sector in the EU15 business economy, which provide important intermediate services for the rest of the economy. We show that changes in the value chain explain about half of the decline and the increase in part-time employment is a further minor part of the decline. In contrast to expectations, the entry of micro and small firms, despite their lower productivity levels, is not responsible for the decline. We also cannot confirm the conjecture that weakening competition allows unproductive firms to remain in the market. |
| Keywords: | business services, labor productivity, productivity slowdown |
| JEL: | L84 O47 D24 L11 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1960&r= |
| By: | Daan Freeman (CPB Netherlands Bureau for Economic Policy Analysis); Leon Bettendorf (CPB Netherlands Bureau for Economic Policy Analysis); Harro van Heuvelen (CPB Netherlands Bureau for Economic Policy Analysis); Gerdien Meijerink (CPB Netherlands Bureau for Economic Policy Analysis) |
| Abstract: | This paper analyses the declining firm dynamism in the Netherlands, which may explain part of the slowdown in productivity growth. We use a rich microdata set including nearly all corporations in the Netherlands during 2006-2016, which enables us to evaluate the TFP growth contributions of exiting firms, start-ups and new firms resulting from mergers & acquisitions in different industries. We use a Melitz and Polanec (2015) decomposition to assess TFP growth contributions. We find that in service industries, start-ups, new firms created by M&As and exiting firms all contribute to overall TFP growth, in line with the creative destruction hypothesis. In manufacturing industries, TFP growth is driven mostly by incumbent firms. Here, entry and exit dynamics contribute relatively little or even negatively to TFP growth. In addition, young firms in the manufacturing industries tend to have higher TFP growth than older firms, while in service industries this is not the case. Finally, in general, relatively low productivity entrants are more likely to exit in the first five years after entry, which is in line with an `up-or-out' dynamic. |
| JEL: | F16 J31 R11 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:427.rdf&r= |
| By: | Kritikos, Alexander S. (DIW Berlin); Schiersch, Alexander (DIW Berlin); Stiel, Caroline (DIW Berlin) |
| Abstract: | In Germany, the productivity of professional services, a sector dominated by micro and small firms, declined by 40 percent between 1995 and 2014. This productivity decline also holds true for professional services in other European countries. Using a German firm-level dataset of 700,000 observations between 2003 and 2017, we analyze this largely uncovered phenomenon among professional services, the 4th largest sector in the EU15 business economy, which provide important intermediate services for the rest of the economy. We show that changes in the value chain explain about half of the decline and the increase in part-time employment is a further minor part of the decline. In contrast to expectations, the entry of micro and small firms, despite their lower productivity levels, is not responsible for the decline. We also cannot confirm the conjecture that weakening competition allows unproductive firms to remain in the market. |
| Keywords: | business services, labor productivity, productivity slowdown |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14610&r= |
| By: | Colmer, Jonathan (University of Virginia) |
| Abstract: | To what degree can labor reallocation mitigate the economic consequences of weather-driven agricultural productivity shocks? I estimate that temperature-driven reductions in the demand for agricultural labor in India are associated with increases in non-agricultural employment. This suggests that the ability of non-agricultural sectors to absorb workers may play a key role in attenuating the economic consequences of agricultural productivity shocks. Exploiting firm-level variation in the propensity to absorb workers, I estimate relative expansions in manufacturing output in more flexible labor markets. Estimates suggest that, in the absence of labor reallocation, local economic losses could be up to 69% higher. |
| Keywords: | temperature, labor reallocation, industrial production |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14604&r= |
| By: | Xavier Giroud; Simone Lenzu; Quinn Maingi; Holger Mueller |
| Abstract: | This paper shows that local productivity spillovers propagate throughout the economy through the plant-level networks of multi-region firms. Using confidential Census plant-level data, we show that large manufacturing plant openings not only raise the productivity of local plants but also of distant plants hundreds of miles away, which belong to multi-region firms that are exposed to the local productivity spillover through one of their plants. To quantify the significance of plant-level networks for the propagation and amplification of local productivity shocks, we develop and estimate a quantitative spatial model in which plants of multi-region firms are linked through shared knowledge. Our model features heterogeneous regions, which interact through goods trade and labor markets, as well as within-location, across-plant heterogeneity in productivity, wages, and employment. Counterfactual exercises show that while knowledge sharing through plant-level networks amplifies the aggregate effects of local productivity shocks, it widens economic disparities between individual workers and regions in the economy. |
| JEL: | C51 C68 E23 E24 L23 O4 R12 R13 R3 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29084&r= |
| By: | Olaoye, Ibukun James; Ayinde, Opeyemi E.; Ayinde, Kayode; Ajewole, Oluwafemi O.; Oloyede, Adeola |
| Keywords: | Community/Rural/Urban Development, International Development, Productivity Analysis |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312752&r= |
| By: | Mekonnen, Dawit K.; Abate, Gashaw; Yimam, Seid; Benfica, Rui; Spielman, David J.; Place, Frank |
| Keywords: | International Relations/Trade, International Development, Production Economics |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea21:312925&r= |
| By: | Fischer, Kai; Reade, J. James; Schmal, W. Benedikt |
| Abstract: | The COVID-19 pandemic has caused economic shock waves across the globe. Much research addresses direct health implications of an infection, but to date little is known about how this shapes lasting economic effects. This paper estimates the workplace productivity effects of COVID-19 by studying performance of soccer players after an infection. We construct a dataset that encompasses all traceable infections in the elite leagues of Germany and Italy. Relying on a staggered difference-in-differences design, we identify negative short- and longer-run performance effects. Relative to their preinfection outcomes, infected players' performance temporarily drops by more than 6%. Over half a year later, it is still around 5% lower. The negative effects appear to have notable spillovers on team performance. We argue that our results could have important implications for labor markets and public health in general. Countries and firms with more infections might face economic disadvantages that exceed the temporary pandemic shock due to potentially long-lasting reductions in productivity. |
| Keywords: | Labor Performance,Economic Costs of COVID-19,Public Health |
| JEL: | I18 J24 J44 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dicedp:368&r= |
| By: | Hamza Saad; Nagendra Nagarur; Abdulrahman Shamsan |
| Abstract: | Background and Objective: Different industries go through high-precision and complex processes that need to analyze their data and discover defects before growing up. Big data may contain large variables with missed data that play a vital role to understand what affect the quality. So, specialists of the process might be struggling to defined what are the variables that have direct effect in the process. Aim of this study was to build integrated data analysis using data mining and quality tools to improve the quality of production and process. Materials and Methods: Data collected in different steps to reduce missed data. The specialists in the production process recommended to select the most important variables from big data and then predictor screening was used to confirm 16 of 71 variables. Seven important variables built the output variable that called textile quality score. After testing ten algorithms, boosted tree and random forest were evaluated to extract knowledge. In the voting process, three variables were confirmed to use as input factors in the design of experiments. The response of design was estimated by data mining and the results were confirmed by the quality specialists. Central composite (surface response) has been run 17 times to extract the main effects and interactions on the textile quality score. Results: Current study found that a machine productivity has negative effect on the quality, so this validated by the management. After applying changes, the efficiency of production has improved 21%. Conclusion: Results confirmed a big improvement in quality processes in industrial sector. The efficiency of production improved to 21%, weaving process improved to 23% and the overall process improved to 17.06%. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2108.07615&r= |
| By: | Ardito, Chiara (University of Turin); Berton, Fabio (University of Turin); Pacelli, Lia (University of Turin); Passerini, Filippo (Catholic University Milan) |
| Abstract: | We measure the impact of employment protection reduction in an uncertain framework on firms' hires and performance, exploiting the Italian 2015 Jobs Act. Results indicate that firms (1) stabilize workforce mainly through contract transformations of low-tenure and low-human-capital incumbent workers performing high-physical and low-intellectual tasks; (2) apply a cost-saving strategy that increases profits and decreases value added per-head. Effects are stronger among non-exporting and non-innovative firms. Our evidence casts doubts on the effectiveness of employment protection reductions in enhancing productivity in the long run. |
| Keywords: | employment protection, human capital, productivity, tenure, tasks |
| JEL: | J08 J21 J24 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14613&r= |
| By: | Damian Grimshaw (King's Business School, King's College London); Marcela Miozzo (King's Business School, King's College London) |
| Keywords: | productivity, human capital, skill, innovation |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:anj:wpaper:006&r= |